The Long- Run Aggregate Supply (LAS) Curve

question 364

Multiple Choice

The long- run aggregate supply (LAS) curve

• A) has a positive slope.
• B) is horizontal.
• C) has a negative slope.
• D) is vertical.

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Definitions:

Portfolio

An assortment of financial assets such as equities, debt securities, raw materials, liquid cash, and near-cash items, comprising both mutual funds and exchange-traded funds.

Expected Return

The predicted average of possible returns on an investment, weighted by the likelihood of each outcome.

Market Risk

Market risk is the potential for investors to experience losses due to factors that affect the overall performance of the financial markets, such as economic recessions or interest rate changes.

Inflation

The pace at which the average cost of products and services escalates, causing the value of money to diminish.